Stocks end August with losses | Fed’s Mester sees benchmark rate above 4% | Bernstein’s strategy for internet stocks

A month that's historically tough for stocks looms ahead.

VIEW IN BROWSER | SUBSCRIBE WED, AUG 31, 2022 EVENING BRIEF AS OF WED, AUG 31, 2022 • 04:59 ET DJIA 31510.43 -0.88% -280.44 S&P 500 3955.00 -0.78% -31.16 NASDAQ 11816.20 -0.56% -66.93 Most Active DOW NAME LAST CHG %CHG AAPL 157.22 -1.69 -1.06% INTC 31.92 -0.34 -1.05% MMM 124.35 -0.51 -0.41% S&P 500 NAME LAST CHG %CHG AAPL 157.22 -1.69 -1.06% AMD 84.87 -2.07 -2.38% NVDA 150.94 -3.74 -2.42% NASDAQ NAME LAST CHG %CHG AAPL 157.22 -1.69 -1.06% AMD 84.87 -2.07 -2.38% NVDA 150.94 -3.74 -2.42% EDITOR'S NOTE Stocks closed lower Wednesday for a fourth consecutive day, finishing August on a downbeat.   The three major averages pushed their monthly losses to more than 4% each. In July, they posted their best month since 2020.   The moves on Wednesday also cut the indexes' gains from their mid-June bottoms. Nevertheless, the Dow Jones Industrial Average is still more than 6% above its summer low, while the S&P 500 and Nasdaq Composite are sitting roughly 8% and 11% from their lowest points.   Jobs data remained in focus as investors continue to look ahead to the big jobs report on Friday that could pave the way for further aggressive rate hikes by the Federal Reserve. On Wednesday, ADP reported weaker-than-expected payrolls data for August and a slowdown in hiring compared to July's gain. Investors are cautious heading into September, which statistically has proven to be the worst trading month for equities.   It was just earlier this month that investors were predicting the beginning of the next bull run. Then, stocks were building on their July gains, thanks to a combination of bearish sentiment fatigue and corporate and consumer resilience in the face of inflation.   This week, however, markets are digesting newer inflation-fighting comments from the Fed and a spike in the 10-year Treasury yield. This has contributed to declines in stocks.  It's a cycle that's likely to continue through the rest of the year, according to Brad McMillan, chief investment officer for Commonwealth Financial Network.   "With inflation showing signs of peaking and with growth slowing, the economy is already responding to higher rates — meaning that fewer hikes in the future may be necessary," he said in a note Wednesday. "When the data changes, so will expectations, and the market will react then as well." Tanaya Macheel | Markets and Investing Reporter @tanayamac Watch our live stream for all you need to know to invest smarter. TOP NEWS  Dow, S&P 500 fall for a fourth day, major averages end August with losses Fed's Mester sees benchmark rate above 4% and no cuts at least through 2023 Bed Bath & Beyond announces store closures, layoffs and new financing to fix struggling business Private payrolls grew by just 132,000 in August, ADP says in reworked jobs report Market headwinds could worsen as stocks enter what is traditionally the worst month of the year MicroStrategy chairman Michael Saylor accused of evading $25 million in taxes by DC attorney general FDA authorizes Covid booster shots that target omicron BA.5 variant This is Bernstein's trading strategy for internet stocks going forward after shares were cut in half Walmart-owned Sam's Club raises annual membership fee for the first time in nine years Trump lawyer John Eastman takes Fifth before Georgia grand jury in election interference probe TOP VIDEO Stocks will have a positive story over the next year, says Captrust's Christian Ledoux CNBC PRO Small investors 'embraced' market comeback while Wall Street pros remained skeptical, Ned Davis Research says SPECIAL REPORTS Despite recession fears, most 401(k) investors haven't changed their portfolios. Here's what advisors suggest These bank fees could be taking a bite out of your budget. Here's how to avoid them Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS